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The Two Most Common Retirement Fears

The Two Most Common Retirement Fears

September 19, 2022

Normally, we focus on retirement goals when putting together a plan. Once we help our clients identify their objectives, we create a strategy for a retirement income that hopefully provides for their future lifestyle. 

But we understand that most people experience fear regarding retirement, too. And we want to help you alleviate those feelings. According to the 20th annual Transamerica Retirement Survey of Workers, pre-retirees reported two main worries about retirement:

  • 45 percent worry about outliving their retirement savings and investments
  • 46 percent say that they fear that the Social Security program will be reduced or cease to exist

Once you retire, probably in your sixties, it is certainly possible to live two or more decades. Life expectancy is quite long these days. And so, it does make sense to consider the longevity of your retirement account. We want your distributions to last throughout your lifetime, but on top of that, your income needs to account for rising inflation. That’s why we work to craft a withdrawal strategy that helps your money to last as long as possible. 

As for Social Security, this is a common fear that has been encouraged by alarming news reports. Yes, there are problems within the system, and funding the full scheduled benefits will become more difficult after about 2034. But if you view Social Security as a supplement to retirement income, and not the main source, your viewpoint shifts somewhat. 

According to the Social Security Administration, benefit payments will replace about 40 percent of income for retirees. That means 60 percent of your income is up to you, so it’s important to plan early and stay consistent with your strategy. 

The above fears are common, and they’re not unreasonable. But if we discuss them together we can help you alleviate much of your anxiety. Make an appointment with us and we will discuss different retirement planning strategies that can help you maintain your lifestyle for many years into retirement.